Learn about the types of life insurance available to you. Use financial factors in your life to determine the policy that meets your needs the best.
Types of Life Insurance Available to You
The unexpected death of a loved one could leave immediate family members in financial trouble when there is no safety net to help them pay for related costs. When you look into purchasing life insurance in Las Vegas, there are several factors for you to think about: the ages of your children, the amount of income you provide to the household, the amount of any outstanding debts and medical expenses, and the cost of a funeral and burial or cremation. With these factors in mind, you have the tools to decide which type of life insurance best fits your needs.
This type of life insurance is simple and designed to pay for final expenses related to your death: credit card debt, medical bills, and the cost of a funeral and burial or cremation. Unlike other coverage policies, you do not have to undergo a medical exam to qualify for this type of coverage.
This is generally the most affordable type of life insurance, allowing you to customize the coverage and policy length. The coverage lasts for a certain period of time as long as the monthly premium is paid. For example, to ensure that the policy lasts for the remaining 10 years of your mortgage, it needs to be set up for that period. Traditional fully underwritten term insurance requires a medical assessment, while no medical assessment term coverage bases the premium on your answers to lifestyle and health questions. On average, term insurance premiums steadily rise as you age, but you could choose to pay fixed premiums for long coverage periods.
Whole life and universal life are subcategories of permanent life insurance, which is intended to last for your entire life. Whole life pays out a fixed amount when you pass away and is combined with an investment fund to build a cash value based on the insurer’s investments. Tax is deferred on the cash value for every year that you hold the policy, and you can borrow from it without being taxed. The premium typically doesn’t change. Universal life offers flexible coverage and premium amounts. It’s a combination of term and whole life insurances, involving a money market-like investment and a return based on the market rate.